Barclays confirms big new mortgage rule and is 'first lender to do so'

James Rodger
·2-min read
Barclays confirms big new mortgage rule and is 'first lender to do so'
-Credit: (Image: Reach Publishing Services Limited)


Barclays has confirmed a new mortgage rule which is due to take effect THIS WEEK. Barclays has reduced rates by as much as 0.20 percentage points and said the move followed a “volatile” period in the swap rate market.

Mark Arnold, head of mortgage and savings at Barclays, said: “I’m delighted we’re able to decrease core mortgage rates again after what has been a very volatile period in the swap markets. As we have done during the course of this year, when we see an opportunity in the swap markets, we will act swiftly to pass on the benefit to our mortgage customers.”

Barclays' lowest two-year fix for those buying with at least a 40% deposit has reduced from 4.33% to 4.23%. The bank's lowest five-year fix has fallen to 4.18%, with an £899 fee. And Barclays lowest five-year fix for those with a 10% deposit has dropped to 4.81% with a £999 fee.

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Nicholas Mendes, mortgage technical manager at John Charcol said: "Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes. With swap rates easing over the past couple of days, it’s great to see a lender acting quickly to reflect the slightly improving conditions."

Justin Moy, managing director at EFH Mortgages, told Newspage: "Whilst these reductions are not going to be enough to tip the economy back on an even keel, they will be encouraging to borrowers and suggest that improvements may be on the horizon."

Mike Staton, director at Staton Mortgages, said: "Most people make the assumption that a rate increase by a lender is because they fear the current economic situation. Barclays is proving with this reduction that this is not always the case.

"Barclays have an appetite for lending and want to finish 2024 on a high. They won't be the only lender that reduces rates before the end of this year."

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